Postal News Feature Article

 The Pending Postal Rate Case – How to Meet this Challenge Head On

What is it?

Shaped Base Pricing is a dramatic change in the way the USPS charges for delivery of your mail. Gone will be the weight-based system that presently does not distinguish between the size and shape of the mail piece. The new pricing structure takes into account the ability of the postal service to automate the handling of the piece based upon size, shape and weight. The rates provide incentives to send mail in letter-sized envelopes that are handled by highly efficient and automated processes.

How will it affect me?

This chart illustrates the decision tree for qualifying mail prior to and after the Shaped Based Pricing initiative.

As you can see, this is a complicated process and depending upon your mix of mail could increase the costs of preparing the mail significantly.

Below is an illustration of the possible impact of these changes on your business, illustrating present cost, costs after rate change and the costs after rate changes if certain actions are taken:

Four Options

The chart above essentially illustrates four options that mail center operators will have in addressing the Shaped Based Pricing changes.

1. Change the way in which you prepare and send your mail
2. Pay the penalty imposed by the new structure
3. Acquire equipment that will provide a solution
4. A combination of the above based upon your unique situation 

Smart mail center managers are preparing for this change now; here are some tips how:

Become educated on the details of the price changes that will affect your mail output by talking with the MQC certified staff at San Diego Postal and Shipping Equipment or go to this link: Hasler Shaped Based Pricing

Determine how the new rate structure could impact your operation by evaluating your mail output by size, (letter, flat and parcel) If you currently have a significant number of flats, determine how and if they could be changed to letter sized mail by utilizing a folder inserter and/or duplex printing.

Call us and arrange for a no cost consultation with one of our Mail Quality Control (MQC) certified Account Representatives. They are trained to evaluate the situation at your company and provide you specific solutions that will allow you to minimize the impact of the upcoming rate change.

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